FalconX Expands Into Crypto ETFs by Acquiring 21Shares

The cryptocurrency market continues to capture the interest of institutions in the U.S., as evident from the latest major acquisition involving FalconX and 21Shares.

Acquisition Details

FalconX, a prominent U.S.-based prime broker in the cryptocurrency domain, has entered into an agreement to acquire 21Shares, a leading Swiss crypto asset manager recognized for its diverse range of exchange-traded products (ETPs). The specific terms of the acquisition remain undisclosed.

This strategic acquisition allows FalconX to move beyond its traditional expertise in market making and liquidity services, further expanding into the thriving sector of crypto ETFs and structured products, as reported by The Wall Street Journal. With 21Shares’ established distribution framework and product engineering expertise—which includes over $11 billion in assets across Bitcoin, Ethereum, and various token baskets in Europe—FalconX is strategically positioned for growth in derivative-focused and crypto funds.

Broader Industry Context

This transaction aligns with a larger trend within the industry, which is currently experiencing an upsurge in mergers and acquisitions, likely driven by a more favorable regulatory landscape in the U.S. this year. For instance, Coinbase has recently finalized its $2.9 billion acquisition of Deribit to enhance its derivatives trading capabilities, and it also acquired Echo for $375 million, a platform favored for early-stage crypto fundraising.

In other significant developments, Kraken has acquired a CFTC-licensed exchange for $100 million as part of its expansion strategy.

Stay tuned for more updates on the evolving cryptocurrency landscape.